madoff

Tuesday, February 24, 2015

Late Post: Court Decision re: Interest Payments on Madoff Investor 'Losses": Denied--Duh!

To: Helen "Hell On Wheels" Chaitman
From: Bernie Madoff

Had I not been so been busy playing in a backgammon tournament with Junior (Persico), and then distracted re final requests from ABC for me to approve their choosing Richard Dreyfuss to play me in an upcoming film (he really doesn't look too much like me though), I would have opined on last Friday's court decision sooner. You know--the one that finally put down your  bizarre claim that investors should be entitled to receiving interest on the money they deposited with me.

The full news story courtesy of Reuters is below. I am only compelled to remind you and everyone else that were it not for your absolutely ridiculous argument, the 'casualties' in Boca and elsewhere would have received payments from Picard et al months, and arguably years sooner than they have to date. I know of at least 10 such people who have since died..that's right..d-e-a-d without having received the balances that were held back by Picard, all because of your irresponsible ambulance-chasing. Shame on you.


(Reuters) - Victims of Bernard Madoff's massive fraud are not entitled to inflation or interest adjustments on their claims, a federal appeals court ruled on Friday, in a decision that could speed the return of more than $1 billion to the swindler's former customers.

Irving Picard, the trustee liquidating Bernard L. Madoff Investment Securities LLC, said he will seek permission from a federal bankruptcy judge to distribute that sum, on top of $7.2 billion paid out so far, as soon as possible.

Picard has kept the additional money in reserve because of litigation over whether former customers deserved "time-based" damages on claims arising from Madoff's Ponzi scheme that was uncovered in 2008.

In Friday's decision, the 2nd U.S. Circuit Court of Appeals in New York said that because the Securities Investor Protection Act, a federal law that helps victims of failed brokerages, did not address such damages, Picard had the flexibility to choose the fairest method to determine the size of valid claims.

Writing for a unanimous three-judge panel, Circuit Judge Chester Straub also said it would be unfair to adjust for inflation and interest the claims of earlier customers, at the expense of later customers.
"Even if all customer property were miraculously recovered, it would be insufficient to satisfy customer claims to the extent such claims were increased to reflect inflation," Straub wrote. "An inflation adjustment to net equity claims could allow some customers to obtain, in effect, a protection from inflation for which they never bargained."

Friday's decision upheld a Sept. 2013 ruling by U.S. Bankruptcy Judge Burton Lifland in Manhattan.
Lifland said Madoff's customers had not bargained for inflation protection or guaranteed returns, and that calculating inflation and interest adjustments would be impossible because their final account statements had been fabricated.

No decision has been made on further appeals.
"It's obviously a disappointment," Greg Schwed, who argued the appeal for some claimants, said in a phone interview.

Amanda Remus, a spokeswoman for Picard, called the decision an "important milestone," saying the only obstacle to the additional payout was a further appeal. Picard is hopeful any further delay would be viewed as "pointless," she said.

Lifland died in January 2014. Picard has recouped $10.55 billion for Madoff victims who lost an estimated $17.5 billion of principal. Madoff, 76, is serving a 150-year prison term after pleading guilty to running a decades-long fraud.

The case is In re: Bernard L. Madoff Investment Securities LLC, 2nd U.S. Circuit Court of Appeals, No. 14-97.




Friday, February 20, 2015

Bernie's Bongiorno Driving Herself via Bentley to Camp Fed-Go Girl, Go!

To: Bernie
From. A. Bongiorno (aka "Nan")


You were right for pointing me to Mo and Ro; two of the best lawyers in the world!

Thanks to them (and to the Judge, of course!), I don't have to cram my 4ft by 4ft body into into a shit seat on JetBlue, and I'm allowed to drive myself down to the Federal pen in Florida! Yes, I still have the Bentley, so I'm thinking the drive won't be so bad..and maybe Rudy and I can find some Shake Shacks to stop at on the way!

I only hope they have a car storage facility there--Rudy loves driving his Mercedes and I'd shit my pants if I knew he was driving my car and lounging in our new $6mil pad in Boca!

Listen, hon...I hope all is good and thanks for your support!
Love,
A.B.

Monday, February 9, 2015

I Told You So..Madoff Investors Receive Another Payout From Picard

February 09, 2015 Press release from the office of Irving H. Picard, SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS)

February 09, 2015 11:20 AM Eastern Standard Time Irving H. Picard, Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC, said today that the fifth pro rata interim distribution of recoveries from the Customer Fund to eligible BLMIS customers commenced on Friday, February 6, 2015.

In the fifth interim distribution, the SIPA Trustee distributed approximately $355.8 million on a pro rata basis to BLMIS account holders with allowed claims, which brought the total amount distributed to eligible claimants to more than $7.2 billion, which includes $823.7 million in committed advances from the Securities Investor Protection Corporation (SIPC).

“Every distribution of recovered funds marks another significant step forward for the victims of Madoff’s Ponzi scheme,” said Mr. Picard. “The efforts of my global team continue unabated and we remain committed and highly motivated to recover further substantial funds which were stolen in the Madoff fraud and return them to their rightful owners.”

SIPC President and CEO Stephen P. Harbeck said, “The excellent results to date show that the Bankruptcy Code and the Securities Investor Protection Act give the Trustee the ability to recover assets for the investors who lost their funds in this financial tragedy. SIPC supports the Trustee fully in his efforts to maximize the returns to the victims. To that end, SIPC pays for all of the administrative expenses necessary to recover assets for distribution in the Madoff proceeding. All of the funds recovered are distributed to customers. No customer money is used for administrative expenses. We look forward to additional distributions as soon as possible.”
“2015 will be another significant year for the Madoff Recovery Initiative,” said David J. Sheehan, Chief Counsel to the SIPA Trustee. “Not only do we anticipate substantial recoveries for the BLMIS Customer Fund, we are also looking ahead to several critical legal rulings which have the potential to release billions of dollars, currently held in reserve, for immediate distribution to eligible claimants.”

The fifth distribution was paid on claims relating to 1,077 BLMIS accounts, to record holders of allowed claims as of January 15, 2015. The fifth pro rata interim distribution resulted in the return of 2.743 percent of the allowed claim amount for each individual account, unless the allowed claim has been fully satisfied. The average payment for an allowed claim issued in the fifth distribution totaled approximately $330,000.00, the smallest payment totaled approximately $431.00 and the largest approximately $67.1 million.

Funds for the fifth distribution were primarily generated from recent settlements negotiated by the SIPA Trustee’s BakerHostetler legal team with feeder funds Herald/Primeo and Senator. The SIPA Trustee’s special counsel at Windels Marx reached a settlement with the Blumenfeld defendants in the same period. Together, more than $642 million was recovered for the BLMIS Customer Fund through these settlements. In addition, other settlement recoveries through December 31, 2014 were also included in the fifth distribution. The Bankruptcy Court approved the SIPA Trustee’s allocation and distribution motion on January 15, 2015.

Currently, the SIPA Trustee has allowed 2,551 claims related to 2,216 BLMIS accounts. Of these accounts, 1,160 accounts were fully satisfied following the fifth interim distribution. All allowed claims totaling $976,592.00 or less were also fully satisfied. The fifth interim distribution, when combined with the four prior interim distributions, satisfied up to 48.802 percent of each customer’s allowed claim amount unless the account was fully satisfied.

As of December 31, 2014, the SIPA Trustee had recovered or reached agreements to recover more than $10.5 billion since his appointment in December 2008. These recoveries exceed similar efforts related to prior Ponzi scheme recoveries, in terms of dollar value and percentage of stolen funds recovered. Ultimately, 100 percent of the SIPA Trustee’s recoveries will be allocated to the Customer Fund for distribution to BLMIS customers with allowed claims.
Prior distributions by the SIPA Trustee (as of February 6, 2015) to BLMIS accounts with allowed claims were as follows:
• The first pro rata interim distribution, which commenced on October 5, 2011, has distributed approximately $605.2 million, representing 4.602 percent of the allowed claim amount of each individual account, unless the claim was fully satisfied.
• The second pro rata interim distribution, which commenced on September 19, 2012, has distributed approximately $4.395 billion, representing 33.556 percent of the allowed claim amount of each individual account, unless the claim was fully satisfied.
• The third pro rata interim distribution, which commenced on March 29, 2013, has distributed approximately $614.3 million, representing 4.721 percent of the allowed claim amount of each individual account, unless the claim was fully satisfied.
• The fourth pro rata interim distribution, which commenced on May 5, 2014, has distributed approximately $413.0 million, representing 3.180 percent of each individual account, unless the claim was fully satisfied.
More information on overall recoveries to date and the ongoing liquidation can be found on the SIPA Trustee’s website: www.madofftrustee.com.
Messrs. Picard, Harbeck and Sheehan would like to thank Seanna Brown and Heather Wlodek, who worked on the fifth pro rata interim distribution and its related filings, as well as the legal firms of BakerHostetler and Windels Marx, and all of the attorneys and professionals whose work has led to the distribution. They would also like to thank Vineet Sehgal and his colleagues at AlixPartners, as well as Kevin Bell and his colleagues at SIPC, for their ongoing work and participation in the Madoff Recovery Initiative distributions.

Thursday, January 1, 2015

2015 New Year Resolution From Bernie Madoff

First, allow me to extend New Year's greetings to all of my fans and followers. I wish all of you great health, happiness and prosperity in 2015.

Well, actually, I don't wish that upon all of you; there are a bunch of boneheads who come to this blog and are still trying to figure out whether its really me that is blogging and tweeting, or if its a muse of mine. For those idiots, I can only say "trust me" and to remind you that it really is me.

There are also a bunch of others who I wish nothing for; those who follow this blog with the hope that you might discover that I'm sick and soon-to-die. As you can see, I'm not ready to kick the bucket just yet.

My resolution for the new year is to continue to provide exclusive insight to the Madoff story, my opinions about the financial markets, along with sharing thoughts about the stupid, unethical, or just plain wacky behavior perpetrated by others, which likely includes mention of an assortment of public-profile narcissists who are convinced they are smarter or more sophisticated than the rest of us.

That's it. I won't be revealing the location of any secret stash of cash that Jeff Picower has stowed away. I won't be "walking back" and pointing fingers at any one new who might have enabled the events that led to "the greatest Ponzi Scheme in history."

I will however offer an opportunity this year for folks who would like to serve as guest contributors to this platform. I've also decided to allow corporate sponsors to promote their products and services here and in my tweets, as long as they are legal.  If you're interested, you'll be able to figure out how to contact me.

Before I forget to add, I'll continue to profile prolific journalists who actually know how to investigate and report newsworthy stories. My pick of the month is courtesy of investigative journalist Richard Behar, whose January 1 Forbes piece was very nicely done, even if Rich has an "axe" against me personally. 
Best regards,
BLM




Friday, December 19, 2014

Chanukah Brings Madoff Victims More Gelt In Recoveries; 1% Checks Delivered

From: Bernie Madoff
To: Former Customers

Happy Chanukah...Although the news media has somehow failed to jump on this story, by now you should have received a nice recovery check in the mail courtesy of bankruptcy trustee agent AxialPartners.

I'm not recommending that you invest the 1% of your net loss amount check in Oil futures, stocks, or some of those wacky-ass Energy "MLPs" that have just given up 50% of their NAV in the past 3 weeks. And if you had money with that FO in CT that is telling clients they should double down on the investments he made for them, its going to take a long time to get even.

Despite all of the obvious negatives, I'm hearing that Uber is "very interesting" to top hedge fund folks, including 2 big ones who turned down the very recent chance to exit their first round investment at a $40bil valuation. Despite their 4x return in 2 years, and despite all of the known headwinds this company is facing each day.

BLM

Friday, December 5, 2014

Anniversary Note: A Madoff Letter to Judge Swain

To: The Honorable Laura Taylor Swain
From: Bernard Madoff
re: Dec 8 Sentencing

Dear Judge Swain:

We all know that we are days away from the 6 year anniversary of my "coming out" and acknowledging being the ring leader of a scheme that swiped serious bucks from a bunch of people. The fact that the sentencing date for several members of my staff is falling 3 days shy of that 6 year anniversary is likely a coincidence, but its more than likely this milestone date will influence your decision as to the severity of whatever prison sentence(s) that you will be handing down this coming Monday.

That said, I am compelled to appeal to your compassion and to remind you of my recent letter in which I repeated that the only people who were knowingly complicit in the scheme was Dimes Dipascali. It would seem obvious that among others, Nan Bongiorno (whose picture on the above left required a wide-angle lens) would not be a good candidate for a lengthy (or even a short ) stay in any prison, if only because it would cost the government thousands of dollars to retrofit any federal facility to facilitate her needs.

Aside from the fact that Nan couldn't possibly fit into a traditional, prison cell bunk bed, whatever venue she would be sent to would certainly have to reconfigure the commodes in order to accommodate her.  Otherwise, her attorneys will have plenty of ammo to appeal any sentence you hand down on the grounds of 'cruel and unusual punishment' were "Nan" to have to serve time. And, let's not forget the additional costs to feed her. As you can easily see, this is a woman with an outsized appetite and trust me when I tell you that she could not possibly subsist on the menu that is typically available to inmates at most Federal 'camps'.

The irony is that Dimes is still dancing around thanks to his 'cooperation'...Based on my own knowledge of sociopathy, the fact that his "testimony" was the principal factor that brought these defendants to your court room is merely a classic example of how crazy the world is.

With those thoughts, I extend to you warm season's greetings.

BLM
Butner Camp


 
My Zimbio
Top Stories